Mrs. Tom Seab Village Bank Group

The Village Bank consisting of ten members is located in Prachum Angk village, in Kandal province. They plan to use the loan for different purposes.

Mrs. Tom S. is the 50 year old Village Bank president. She is a farmer who owns a plot of land to cultivate rice to earn a living. Her husband, Mr. Hae Sat, is a construction worker. Although they try to work hard, they still earn less income than needed to support their household. In order to improve their living, she decided to ask for a loan to purchase a sewing machine to start a new business to earn more income. She has two children who are enrolled in the local school.

Four members in this group have end-of-term loans and the rest have monthly payment loans. They are not required to pay any principal on the loan until the very end of the loan term. End-of-term (EoT) loans are AMK’s main product because it is most beneficial to Cambodia’s poor. It allows them to repay portions of the principal whenever they are financially able.

Most clients start to make payments many months before the end of their loan terms. Almost all of AMK’s clients make their payments on time. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% on Kiva.

Additional Information

About AMK

Angkor Microfinance Kampuchea (AMK) is a leading microfinance institution in Cambodia with a wide reach of operations. AMK works with over 6,000 villages and serves clients in every Cambodian province. With an average loan size of US$115, AMK’s focus is to provide credit and savings products to the very poor in rural areas. For more information, please visit AMK's website.

This is a Group Loan

In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.

Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.